Cash management 2013 Practice paper 2 question 1.4

Deaniedani
Deaniedani Registered Posts: 26
in AAT Level 4 (Level 8 in Scotland)
I need help on the cash management level 4 AAT practice paper 2 question 1.4 investment income, the answer is £3575 for period 7. But I don’t know how to work it out to get that answer. Can someone please help?

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  • Smiller94
    Smiller94 Registered Posts: 12
    Deaniedani said:

    I need help on the cash management level 4 AAT practice paper 2 question 1.4 investment income, the answer is £3575 for period 7. But I don’t know how to work it out to get that answer. Can someone please help?

    Hey!

    I totally agree, i am stuggling with this figure also!
    Probably a long shot as it was SO long ago but I dont suppose you could help explain this to me?

    Thank you in advance for any help you can give.
  • petitechocoholic
    petitechocoholic Registered Posts: 8
    Hi all
    For the investment income you have to add on the percentage figures - 2.8% + 0.5% = 3.3%
    Times this by the amount so 0.033 x 1300000 = 42900 - this is the yearly interest so monthly = 42900/12=3575

    Can anyone help me get the mortgage payment of £42,000?
  • Smiller94
    Smiller94 Registered Posts: 12
    Hi,

    I can help with that.

    To work out the £42,000 mortgage payment figure you need to:
    4,000,000 x 90% = 3,600,000 / 120 months (10 years) = 30,000/month (CAPITAL)
    3,600,000 X 4% = 144,000/12 months = 12,000 (INTEREST)

    Then add these together :-)
    petitechocoholic said:

    Hi all
    For the investment income you have to add on the percentage figures - 2.8% + 0.5% = 3.3%
    Times this by the amount so 0.033 x 1300000 = 42900 - this is the yearly interest so monthly = 42900/12=3575

    Can anyone help me get the mortgage payment of £42,000?

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